**Lucid Group (NASDAQ: LCID)** has faced significant challenges since its public debut on July 26, 2021, through a SPAC merger. Initially opening at $25.24, it reached a high of $57.75 in November 2021 but has since traded around $9. The company projected deliveries of 20,000 vehicles in 2022, but actual deliveries fell far short, with only 4,369 vehicles delivered in 2022 and 6,001 in 2023. Lucid has postponed the launch of its second vehicle, the Gravity SUV, to late 2024 and aims to produce 25,000 to 27,000 vehicles in 2026.
More than 60% of Lucid’s shares are owned by Saudi Arabia’s Public Investment Fund, which also placed an order for 100,000 vehicles in 2022. The company’s enterprise value stands at $5.2 billion, equating to 2.3 times projected 2023 sales. However, analysts caution that unless Lucid can effectively scale its operations and reduce its reliance on Saudi investments, the stock is likely to continue trading at a discount.
